28 Wednesday Feb 2018
Posted in Buying a Home, Mortgage, Personal Finance
Tags
budgets, Buying a Home, First Time Home Buyers, First Time Home Buyers Plan, First Time Home Buyers Tax Credit, Mortgages, real estate, RRSP Home Buyers Plan for Disability
Home Buyers Plan allows individuals to withdraw funds from their RRSP for a home purchase. Either for themselves or someone with a disability.
Below is a link to help you navigate your questions as to if you qualify under the Home Buyers Plan.
15 Thursday Feb 2018
Posted in Buying a Home, Mortgage
Tags
Buying a Home, Closing Costs, Finance, First Time Home Buyers, Lawyer at closing, Lifestyle, Mortgage Professional, Mortgages, Ontario Land Transfer Tax, real estate
You have met with your mortgage broker and have met all the conditions to secure financing. Next step is to meet with your lawyer. A referral is always a good way to go in finding a lawyer. When you have found one or a few, feel free to give them a call to see how much they will charge you. Fees can vary. You do not have to wait until closing day to meet with your lawyer; you can do so days ahead and this gives you more time on move day as well as peace of mind.
Here is a basic idea of the items that will be reviewed at your lawyers.
Down Payment: in setting up your financing you agreed to a certain amount as a down payment. The amount that you put down as a deposit with your Purchase Offer will be factored as part of your down payment money. The total amount of down payment will be purchase price minus mortgage amount minus deposits. You lawyer will finalize this number for you which you will bring as certified funds. If you are selling a home and purchasing another one, then whatever equity is coming from that property will form part of the down payment. The total amount of the down payment will be purchase price minus mortgage amount, minus existing equity, minus deposits.
Land Transfer Tax: this tax is calculated as a percentage of the purchase price of your home, which is payable upon closing. The amount varies in different provinces but you lawyer will be able to determine what the amount is for you. If you are a first time home buyer you may receive rebates on Land Transfer Tax so decreasing the amount you owe.
PST on Insured Mortgages: When you put less than 20% down on the purchase of a home, it will be insured by one of the three companies that insure mortgages in Canada. This mortgage insurance premium which most commonly is added to the mortgage, is charged a PST tax which you will be required to pay at closing.
09 Tuesday Jan 2018
Posted in Buying a Home, Mortgage
Tags
Buying a Home, First Time Home Buyers, home buyer, investment, Mortgage Broker, Mortgages, real estate, Refinancing, rentals, self employed
If you have been approved or pre approve for a mortgage ensure you do not make changes that could jeopardise your mortgage approval. If there are changes it can change your approval to a decline which can be a huge disappointment and sometimes have financial repercussions. Nothing is final until the deal is actually closed and title and mortgage has been registered.
Here are your Top 10 Awareness Tips:
14 Friday Jul 2017
Posted in Buying a Home, Mortgage
Tags
25 History of mortgage rates, debt, First Time Home Buyers, home buyer, Mortgages, rates, real estate, self employed
When writing this the Bank of Canada has just announced this past Wednesday a increase of its overnight lending rate, the rate it lends money out to the banks, from .05% to .75%. This anticipated gloom and doom predicated by the media creates fear in how this will negatively affect the market. and consumers and destruction is about to happen. To put matters into perspective, I have attached a chart demonstrating the 25 year history of our mortgage rates.
When looking at the charts we can see that the variable rate has outperformed the fixed rate, which is interesting to note, and if we were to start going up the chart we would see the same thing. There really is not anything new when it come to rates, they go up and they go down and the market bounces along with it. The biggest concern is our government which keeps tightening the qualifications for getting a mortgage which is keeping people out of the market or qualifying with lenders that charge high interest rates. We enjoy and continue to enjoy low rates, so let’s use that to our advantage instead of being driven by media fear.
12 Monday Jun 2017
Posted in Buying a Home, Mortgage, Personal Finance
Tags
Finance, Investing, investment, Mortgage, Mortgages, rate of investment, rental properties, rental property, rentals
“Is There Ever a Bad Time to Invest in a Rental Property”
is an article that appeared in the Financial Post a few years ago
that says it quite well. The conclusion is no as he runs down some historical numbers on rate of return over 20 years. Investment properties have your money work for you. The tenant takes care of paying down the mortgage and the market takes care of the appreciation value of the home. It’s a brick & mortar investment, and if done right, can make you a very happy investor.
You can click here to read the full article
So how do you start?
21 Wednesday Dec 2016
Posted in Mortgage
Tags
Accessing equity in your home, Buying a Home, Collateral Mortgage, Finance, First Time Home Buyers, Investing, Mortgages, Refinancing, Standard Mortgage Charge, Why use a Mortgage Broker
There are basically two ways that a mortgage can be registered against your property. Either as a Standard Charge or a Collateral Mortgage. Let’s review these options
A Standard Charge mortgage is registered with the land title or registry office in your municipality and it is registered for the amount of your mortgage. If you have a mortgage for $310,000.00 it is registered as $310,000.00. This charge can be transferred for a nominal fee if you would like to move it to another lender and often the lender who will be receiving the mortgage will pick up the costs.
A Collateral Mortgage is resisted under Personal Property Security Act and can only be registered or discharged on a property and cannot be transferred. The amount that is registered can be up to 125% of the purchase price or value….. yes purchase price not mortgage amount, of your home. For example if the purchase price or appraised value is $5000,000.00, the amount that can be registered is $625,000.00. So why would a lender register as a collateral mortgage? What are the benefits? Well the idea is that if you require more money one day, then one would save the legal cost of registration fees. TD Bank registers all their mortgages as Collateral Charges and often if you have an all in one credit line and mortgage this too is registered as Collateral Charge.
The question you need to ask is: Does it make sense for the bank to own the equity in my home?
06 Thursday Oct 2016
Posted in Mortgage
Tags
Buying a Home, Discount Interest Rate, Finance, First Time Home Buyers, Interest Rate, Interest Rate Differential, Mortgage Choices, Mortgage Professional, Mortgage Rates, Mortgages, Renewal, Why use a Mortgage Broker
If you had to break a contract for the same product which would you prefer to pay — $3,375.00 or $15,375.00? So why are people paying the higher amount?
Statistics show 70% of people who sign a mortgage contract sign a five year fixed rate mortgage contract.
Of these 70% that sign a five year fixed mortgage contract, 58% break them on average after year 3. Wow –58% — that is a lot of people breaking their mortgage contract!
Reason why? It was an unexpected event. Most thought they would be in their home for 5 years but then came the unexpected — job change, marriage, move, renovations, or the other umpteen possibilities
Let’s take the story of Jennifer and Cindy who are each homeowners, and quite content in their homes. Jennifer and Cindy work in a company that has recently decided to expand and will be moving their positions to a different city and province. They each have decided to sell in order to buy a home in their new location. When Jennifer breaks her mortgage to sell she pays a penalty of $3,375.00 and Cindy pays $15,375.00
Why does Cindy pay more and a lot more? All the variables are the same for each of their mortgages —except for one– their choice of lender. Let’s take a look at what is happening. Continue reading
12 Tuesday Apr 2016
Posted in Mortgage
Tags
Benefits of a Mortgage Broker, Mortgage, Mortgage Agent, Mortgage Broker, Mortgage Professional, Refinance, Renewal, Why use a Mortgage Broker
The next time you are looking to buy a home, considering a refinance or looking to renew your mortgage, consider speaking to a mortgage broker. Their services are free and here are a few more reasons this may make sense:
They have access to many different lenders such as banks, credit unions, mono lenders, private lenders etc . , which then gives you options. It will save you time as you will only need to speak with one person, complete one application and have one credit bureau pulled and then the best mortgage can be found for you.
11 Monday Apr 2016
Posted in Mortgage
Tags
Downpayment, Five C's of Credit, How do I get a Mortgage, Mortgage, Mortgage Agent, Mortgage Process, Mortgage Professional, Mortgage Questions
When we are contemplating buying a home, or in the process of doing so, most of us will need a mortgage. Let’s have a look at:
Okay, let’s begin. Who do you go to?
Start with asking friends, family, and colleagues if they can recommend a good mortgage broker, someone who may have helped them with their mortgage. Once you have asked for a few recommendations, pick one, give them a call or send them an email, whichever you prefer.
What does the process look like?
05 Tuesday Apr 2016
Posted in Mortgage
Tags
Buying a Home, Finance, First Time Home Buyers, Home Improvements, income and expenses, Lifestyle, Mortgage Agent, Mortgages, Purchase Plus Improvement Mortgage
Are you looking to purchase a home that requires work to be done? Maybe you don’t have the time or inclination to do the renovation yourself or want it done fast so you can move in quickly! Why not have the funds available so you can pay someone else to do the work?
Or maybe you are qualified to manage the renovations yourself but require the funding to do so? Consider a Purchase Plus Improvement Mortgage.
A Purchase Plus Improvement Mortgage can be a great fit for a newly purchased home or an existing home. This unique type of mortgage is designed for those who wish to purchase a home or already own a home that may require some immediate upgrades. If the property is not exactly what you want, then build it, renovate it, add it and upgrade it! Maybe you have a desire to add your own personal touch or increase your living space.
Marg DeBoer 